Nepal's parliament has elected former communist rebel leader Pushpa Kamal Dahal as the country's new prime minister.

The parliament's speaker, Onsari Gharti Magar, announced Dahal received a majority of MP votes on Wednesday.

Minister Khadga Prasad Oli stepped down last week ahead of a no-confidence vote in parliament, which he was expected to lose.

The Nepali Congress, the biggest party in parliament, and a number of smaller parties have said they would support Dahal. It is his second time as prime minister of the Himalayan nation.

READ MORE: Nepal Prime Minister Khadga Prasad Oli resigns

Dahal's first tenure ended in 2009 when he resigned over differences with the president about the sacking of an army chief.

He led a communist rebellion against the government for a decade until 2006, when the rebels signed a UN-monitored peace agreement.

More than 17,000 people were killed during the rebellion.

Dahal will serve as the 24th prime minister in the 26 years since the nation adopted a multi-party democracy, and the eighth since a 239-year-old monarchy was abolished eight years ago. 

Nepal Prime Minister Khadga Prasad Oli resigns

Source: Agencies